Premarket Prep USDCAD 05132020

This is my premarket prep for today’s European session for the Forex pair USDCAD. This prep builds off of my weekly trade plan I made here:

http://bearmarkettrader.com/2020/05/09/usdcad-week-20-trading-plan/

The purpose of a premarket prep is to find setups within my weekly trade plan bias.

Non-conjecture observations of the market

D1 moved closer to D1 Supply ZOI 1.40962 and D1 QHi after moving over conterminous supply 1.40364 from the Bearish Engulfing
Not too convincing inside bar on H4, but enough room for it to move down if move continues
H1 Bearish Engulfing just below D1 Supply ZOI 1.40962 and D1 QHi followed by a consolidation (All during AS)
M30 KC turning range bound, no break from VWAP yet
Market profile
- HK accepted value but was showing consolidation with a ledge indicating medium activity ahead
  - Consequent drop after taking out 1.40558 during L
- Price trading above LN PVAH and Range

Sentiment – Bearish

ZOIs for Possible Shorts

ZOIs for Possible Long

Focus Points for trading development

Exit rules
- Option 1: hold trade until noon (London time)
- Option 2: Target hit (SL or x2 TP)
- NO OPTION 3
  - UNLESS a trade is entered within 1 hour or half hour before the hard exit rule option 1
Entry rules
- Use TPO confirmation or invalidation for directional decisions by looking for
  - TPO extension with a sustained move (BO from IB)
  - TPO extension with failed auction (return to IB)
  - How this direction of TPO extension relates to Value Area open sentiment
- 09:00-10:30 – Time period for entry based on M30 and higher price action confirmation in conjunction with market profile and trade locations
- 10:30-12:00 – Entry can be based on lower time frame price action (but stops and further analysis on M30) at higher time frame trade locations with market profile and daily range
- No staring at M5 chart
- Trade needs to have a target that has the chance of hitting min. X2 R/R
- Can’t re-enter a trade for one hour after a loss

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